Guidewire Software's stock plummeted 12.03% in post-market trading on Thursday, according to movement data.

The property and casualty insurance software provider reported third-quarter fiscal 2026 results that surpassed analyst expectations, with adjusted earnings per share of $0.82 beating the $0.74 estimate and revenue of $372.5 million exceeding the $355.95 million forecast. However, the stock reversed sharply lower after the report.

Analysts noted that shares had rallied during the regular trading session in anticipation of strong results, suggesting the positive earnings were already priced in. Furthermore, the company's annual recurring revenue guidance for the full fiscal year, with a midpoint of $1.233 billion, came in slightly below Wall Street's estimate of $1.235 billion, raising concerns about future growth momentum and triggering the sell-off.